IN RE GRANITE PARTNERS, L.P.

Bankruptcy Nos. 94 B. 41683(SMB) to 94 B 41685(SMB).

219 B.R. 22 (1998)

In re GRANITE PARTNERS, L.P., Granite Corporation, and Quartz Hedge Fund, Debtors.

United States Bankruptcy Court, S.D. New York.

March 9, 1998.


Attorney(s) appearing for the Case

Harrison J. Goldin, Chapter 11 Trustee, Goldin Associates, L.L.C., New York City.

Willkie, Farr & Gallagher (Myron Trepper, Benito Romano, John R. Oller, of counsel), New York City, for Chapter 11 Trustee.

Kramer, Levin, Naftalis & Frankel (Kenneth H. Eckstein, of counsel), New York City, for Harrison J. Goldin.

Grais & Phillips, L.L.P. (Isaac Corre, of counsel), New York City, for Gifford Fong Associates.

Berlack, Israels & Liberman, L.L.P. (Steven E. Greenbaum, Edward S. Weisfelner, of counsel), New York City, for Unofficial Investors' Committee.

Friedman, Kaplan & Seiler, L.L.P. (Eric Seiler, of counsel), New York City, for Litigation Advisory Board.

Carolyn Schwartz, U.S. Trustee (Diana G. Adams, Asst. U.S. Trustee, of counsel), New York City.

Zalkin, Rodin & Goodman, L.L.P. (William H. Schrag, Jay Teitelbaum, of counsel), New York City, for Richard S. Toder, Fee Examiner.


MEMORANDUM DECISION REGARDING APPLICATIONS FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES

STUART M. BERNSTEIN, Bankruptcy Judge.

The principal matter before the Court calls into question the disinterestedness of a chapter 11 trustee's counsel who must investigate potential claims against another client. This and other conflict, disclosure and contract issues have been raised in connection with the final applications for compensation and reimbursement...

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